Hinsdale Officials Praise Chicago Mayor's Statement

HINSDALE, IL — Hinsdale officials last week credited Chicago Mayor Lori Lightfoot for her statement against the governor's signing of a pension bill that she called "fiscally irresponsible."

Hinsdale officials said they feared the bill would hurt all municipalities. But news accounts indicate the legislation actually targeted the Chicago firefighters pension fund. The law guarantees 3 percent cost-of-living annual increases for members of Chicago's firefighters pension fund born after Jan. 1, 1966.

“This bill is fiscally irresponsible and validates a Springfield practice of cutting back room deals without full transparency and debate,” Lightfoot said in a statement.

Hinsdale Trustee Gerald Hughes said he doesn't often agree with Lightfoot, but he said he "wholeheartedly" echoes the mayor's statement.

"The names in Springfield may change, but the playbook remains the same," Hughes said during the Village Board's virtual meeting. "There was yet another unfunded mandate for a pension benefit increase signed by Gov. Pritzker, which increases retroactively benefits for firefighter pensions."

Hughes asked whether Village Manager Kathleen Gargano was informed about the bill. She shook her head in response.

Like just about every Illinois town, Hinsdale has underfunded pensions for police and fire.

"One of the biggest reasons is that there has been years of this type of thing happening where instantly our liability goes up and our assets remain the same," Hughes said.

He suggested the village track the costs related to unfunded mandates for pensions.

A couple of decades ago, most municipalities' fire and police pension accounts were fully funded, Village President Tom Cauley said. But state politicians' decisions over the years have been "reprehensible," causing towns' pension liabilities to increase, he said.

"It was a series of backroom deals in Springfield designed to garner union votes that resulted in unfunded mandates with pensions that put just about every municipality in a position where it was underfunded," Cauley said. "It's not the fault of village governments. It's the fault of Springfield. They have done this again and again and again. I congratulate Mayor Lightfoot for pointing this out."

Gargano said village staff had told her the new law only applies to Chicago, but she would look into the matter and report to the Village Board.

Whatever the case, Cauley said, "it affects us all nonetheless."

In negotiations, Chicago and its fire union have frequently moved the date from 1966 to give all retired firefighters guaranteed 3 percent annual raises, according to Chicago's WTTW public television station.

But because the changes aren't permanent, the city can lower its long-term pension liability, thus reducing the burden on taxpayers.

State Sen. Rob Martwick, D-Chicago, who sponsored the bill, said it allows Chicago to directly address its pension problems, WTTW reported.

“This law simply ensures that the city confronts the true costs of its pension obligations and makes the difficult decisions it needs to make today," he said in a statement, according to WTTW.